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LTE success story in Korea
(Key aspects of LTE success)
Steve Shin, General Manager of Netmanias.com
cm.s.shin@netmanias.c...
Table of Contents
About Netmanias
• CORE EXPERTISE
• MAJOR PROJECTS
LTE success story in Korea
• KOREA, the Hottest LTE Ma...
[About Netmanias]
CORE EXPERTISE
Carrier Wi-Fi
Data Center Migration
Wireline
Network
LTE/LTE Advanced
Mobile
Network
Mobi...
[About Netmanias]
MAJOR PROJECTS
KDDI (Japan)
u Mobile backhaul network
audit
Redback (US)
u TPS market trends in Korea
u ...
LTE success story in Korea
(Key aspects of LTE success)
© 2015 Netmanias  www.netmanias.com
Korea, the Hottest LTE Market in the World
0
5
10
15
20
25
30
35
40
45
Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q...
Korea, the Hottest LTE Market in the World
62.5%
47.2%
41.9%
20.3%
19.8%
13.3%
7.8%
4.3%
4.3%
3.4%
2.9%
2.3%
2.2%
1.9%
0.6...
Korea, leading the World Mobile Innovation
• LTE-A (150 Mbps)
• VoLTE
• World’s first full HD streaming
• Wideband LTE (15...
Korea, leading the World Mobile Innovation
• LTE-A (150 Mbps)
• Wideband LTE (150 Mbps)
• LTE (75Mbps)
• LTE-A (150 Mbps)
...
Mobile Statistics in Korea (Q1 2015)
0
10
20
30
40
50
60
70
1112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4...
Mobile Application Usages in Korea: Spending time
Korean smartphone
subscribers use their
phones more
than 3 hoursa
day
© ...
Mobile Application Usages in Korea: Traffic
0
20
40
60
80
100
120
140
1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3
2012 2013...
Ramp-up of Operator’s revenue by 4G transition
26,000
28,000
30,000
32,000
34,000
36,000
38,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1...
Why 4G subscribers’ ARPU is higher than 3G?
Band Data
100
Band Data 80
Band Data 61
Band Data 51
Band Data 47
Band Data 42...
What happened to innovation?
0
10
20
30
40
50
60
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2011 2012 2013 2014 20...
Let’s briefly look at around 2011!
Explosive growth of Data Traffic
Source: SK Telecom, 2011.07
Source: KT’s internal mate...
What happened to innovation?
If so, how did they deploy 4G LTE network?
Paradigm Shift: It's not coverage, but capacity in...
C-RAN
Standalone Base Station
RRHs
BBU
RRH (Outdoor) BBU (Indoor)
Interface Specifications
between BBU and RRH: CPRI
Distr...
[C-RAN & X-hauling]
1. Where are the concentrated BBUs located at?
CO
BBUs
Fronthaul
Backhaul
CO
Backhaul
Hybrid BH/FH Arc...
[C-RAN & X-hauling]
2. Dark Fiber Availability
Fronthaul (Dark Fiber) Fronthaul (WDM Network)
RRHs
(Outdoor)
CO
BBU
RRHs
R...
End-to-end 4G LTE Network
IP Backhaul
PE
BBU Pool
L3 SW
RRH
Edge
SK Telecom
C-RAN/Fronthaul
EPC Core
Center
Node (4)
Edge
...
End-to-end 4G LTE Network: Deployed Solutions
World Top Class Vendors
IP Backhaul
PE
BBU Pool
L3 SW
RRH
Edge
SK Telecom
C-...
Major Players in Korea
Mobile subscribers trace in Korea (2011-2014)
Mobile subscribers in Korea (Q4 2014)
0.0
2.0
4.0
6.0...
[SK Telecom Case Study]
SK Telecom’s technology innovation and commercialization History
2.4% 7%
13%
21%
27.9%
35%
41% 45%...
[SK Telecom Case Study]
Revenue increase by ARPU improvement and LTE subscriber growth
1.1
1.7
1.8
2.1 2.1
2.2 2.2 2.2
2.6...
LTE Network Innovation (Macro)
IP/MPLS
Macro
RRH
BBU
BBU
Macro
RRH
Master Marco Cell
WDM
RURURRH
10GE (Ring, P2P)
...
BBU ...
LTE Network Innovation (Small cell)
IP/MPLS
Macro
RRH
BBU
BBU
Macro
RRH
Master Marco Cell
WDM
RURURRH
10GE (Ring, P2P)
......
LTE Network Innovation (In-Building)
IP/MPLS
Macro
RRH
BBU
BBU
Macro
RRH
Master Marco Cell
WDM
RURURRH
10GE (Ring, P2P)
.....
Technology Innovation Path:
Qualified at Korean Commercial LTE Markets
D-RAN (Macro Cell) C-RAN (Macro Cell) C-RAN (Small ...
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2015.06.18.lte success story in korea.presentation for iran mobile operators

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2015.06.18.lte success story in korea.presentation for iran mobile operators

  1. 1. LTE success story in Korea (Key aspects of LTE success) Steve Shin, General Manager of Netmanias.com cm.s.shin@netmanias.com, +82-10-2884-8870 Netmanias | NMC Consulting Group Presentation for MCI, MTN Irancell, Rightel and Taliya | at Teheran in Iran | June 16, 2015 June 16, 2015 © 2015 Netmanias  www.netmanias.com
  2. 2. Table of Contents About Netmanias • CORE EXPERTISE • MAJOR PROJECTS LTE success story in Korea • KOREA, the Hottest LTE Market in the World • KOREA, leading the World Mobile Innovation • Mobile Application Usages in KOREA • Ramp-up of Operator’s Revenue by 4G Transition • Why 4G subscribers’ ARPU is higher than 3G? • What happened to innovation? • Explosive growth of Data Traffic • If so, how did they deploy 4G LTE network? • Solution = C-RAN • Major Players in Korea • Case Study: SK Telecom © 2015 Netmanias  www.netmanias.com
  3. 3. [About Netmanias] CORE EXPERTISE Carrier Wi-Fi Data Center Migration Wireline Network LTE/LTE Advanced Mobile Network Mobile WiMAX Carrier Ethernet FTTH Data Center Policy Control/PCRF IPTV/TPS Metro Ethernet MPLS IP Routing 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 eMBMS/Mobile IPTV Services CDN/Mobile CDN Transparent Caching BSS/OSS Cable TPS Voice/Video Quality IMS LTE Backhaul/Fronthaul 14 Netmanias/NMC Consulting Group was founded on year 2002 and is advanced, professional network consulting company which is specialized for IP network area like FTTH, backhaul/fronthaul and IP/MPLS, Service area like eMBMS, IPTV and IMS lastly, Wireless network area like 4G and 5G. © 2015 Netmanias  www.netmanias.com
  4. 4. [About Netmanias] MAJOR PROJECTS KDDI (Japan) u Mobile backhaul network audit Redback (US) u TPS market trends in Korea u Detailed design subscriber policy management and enforcement architecture Yota (Russia) u Mobile WiMAX architecture design and implementations u LTE architecture design Versatel/Tele 2 (Netherlands) ● IPTV Network architecture design and Implementations ● Troubleshooting and optimization H1 (Croatia) u IPTV Network architecture design and implementations KT (Korea) u Operator CDN strategy against global CDN and OTT u LTE backhaul architecture design u Carrier Wi-Fi service network enhancement for KT u KT NGN IP core network evolution strategy u IPTV network architecture design YTL (Malaysia) u IMS Service & Network architecture design and implementations u Troubleshooting and optimization Reliance (India) u Mobile IPTV architecture design and implementations (based-on 3GPP eMBMS) u Detailed design of eMBMS system Mobily (Saudi Arabia) u Mobile WiMAX architecture design and implementations Yota (Peru) u IP/MPLS Network architecture design NMC Consulting Group | Netmanias has accumulated abundant field experiences and technical expertise in System Integration(SI) through 51 consulting and system integration projects conducted in various regions including Korea, Netherlands, Croatia, Russia, Saudi Arabia, Malaysia and India for the past 11 years. © 2015 Netmanias  www.netmanias.com
  5. 5. LTE success story in Korea (Key aspects of LTE success) © 2015 Netmanias  www.netmanias.com
  6. 6. Korea, the Hottest LTE Market in the World 0 5 10 15 20 25 30 35 40 45 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 Q2 Q3Q4 Q1 2007 2008 2009 2010 2011 2012 2013 2014 2015 2G 3G 4G n Mobile subscribers, in Korea, by technology generation (Q1 2007 – Q1 2015) The number of 2G (CDMA) subscribers reached 41 million, the highest on record, in Q2 2007 while 3G (WCDMA) reached its highest level, 35 million, in Q4 2011. As of Q1 2015, 4G LTE service launched in July 2011 has 37.6 million subscribers, which accounts for 66.3% of the total 57.3M mobile subscriptions. Source: GSMA Intelligence, 2014 2G 3G 20072006 2008 2010 2012 2014 2016 20182009 2011 2013 2015 2017 20202019 Mobileconnections[Billion] 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 3G Peak 4G Subscribers [Million] n Global mobile subscribers, by technology generation 2G Peak * Source: Ministry of Science, ICT and Future Planning 2G Peak n Mobile subscribers in Korea (Q1 2015) 4G LTE 2G (10.1%) 3G (24.6%) 66.3% 57.3M Total Mobile Subscribers in Korea 4G LTE Feature Phone Smartphone 72.0% 27.0% 1% Smart Pad 57.3M Total Mobile Subscribers in Korea © 2015 Netmanias  www.netmanias.com
  7. 7. Korea, the Hottest LTE Market in the World 62.5% 47.2% 41.9% 20.3% 19.8% 13.3% 7.8% 4.3% 4.3% 3.4% 2.9% 2.3% 2.2% 1.9% 0.6% SouthKorea Japan US UK Canada Kuwait Germany China SaudiArabia Colombia Romania Russia SouthAfrica Brazil Mexico Dec-14 Dec-13 Smartphone penetration (% of population) LTE penetration (% of mobile subscribers) Source: Ovum, 2015 85% 80% 75% 74% 72% 70% 69% 68% 68% 67% 66% 65% 65% 62% 60% 58% 57% 57% 57% 56% 53% 51% Singapore South Korea Sweden Hong Kong Spain China Denmark UK Norway Taiwan Australia Netherlands Ireland Israel Switzerland New Zealand Finland USA Canada Austia Italy Malaysia Source: Consumer Barometer, 2014 # 1 South Korea South Korea 80% Global LTE/mobile penetration: 6.2% 62.5% 80% # 2 © 2015 Netmanias  www.netmanias.com
  8. 8. Korea, leading the World Mobile Innovation • LTE-A (150 Mbps) • VoLTE • World’s first full HD streaming • Wideband LTE (150 Mbps) • LTE (75Mbps) 850 MHz • Launched unlimited LTE data plan • LTE-A (150 Mbps) • Multi-Carrier • World’s first 4 CH multi-view • Wideband LTE (150 Mbps) • LTE (75Mbps) • VoLTE • Launched unlimited LTE data plan • HD 4Mbps streaming • Multi-Carrier • LTE-A (150 Mbps) • LTE (75Mbps) • VoLTE • Wideband LTE (150 Mbps) • eMBMS • Launched unlimited LTE data plan 1.8 GHz + 900 MHz 1.8 GHz • Multi-Carrier 1.8 GHz + 900 MHz + 2.1 GHz • 3-band LTE-A (300Mbps) • Wideband LTE-A (225Mbps) • Wideband LTE-A (225Mbps) • Wideband LTE-A (225Mbps) 1.8 GHz + 850 MHz + 2.1 GHz 1 1 1 2 2 1 1 1 1 • 3-band LTE-A (300Mbps) 1 World’s first 2 World’s second • eICIC 1.8 GHz 1 1.8 GHz + 850 MHz 1.8 GHz + 900 MHz • 3-band LTE-A (300Mbps) 1 2 2.6 GHz + 850 MHz + 2.1 GHz 2 2.6 GHz + 850 MHz 850 MHz + 1.8 GHz 850 MHz SK Telecom LG U+ KT Wideband (WB) LTE Spectrum Auction 1 2.6 GHz 13 12 11 14 15 1 7 8 10 7 6 8 12 7 9 1 1 4 6 12 3 3 6 7 6 1 13 14 12 1 6 8 7 9 1 7 8 10 12 117 15 4 6 12 3 3 6 7 6 1.8 GHz © 2015 Netmanias  www.netmanias.com
  9. 9. Korea, leading the World Mobile Innovation • LTE-A (150 Mbps) • Wideband LTE (150 Mbps) • LTE (75Mbps) • LTE-A (150 Mbps) • Wideband LTE (150 Mbps) • LTE (75Mbps) • LTE-A (150 Mbps) • LTE (75Mbps) • Wideband LTE (150 Mbps) • eMBMS • 3-band LTE-A (300Mbps) • Wideband LTE-A (225Mbps) • Wideband LTE-A (225Mbps) • Wideband LTE-A (225Mbps)1 1 2 2 1 • 3-band LTE-A (300Mbps) 1 World’s first 2 World’s second 1 • Expanded LTE to nationwide • Expanded 3-band LTE-A to nationwide • 3-band LTE-A (300Mbps) 1 2 2 SK Telecom LG U+ KT Wideband (WB) LTE Spectrum Auction • Expanded Wideband LTE to nationwide• Expanded Wideband LTE to nationwide • Expanded LTE to nationwide • Expanded LTE to nationwide • Expanded Wideband LTE to nationwide 1 13 12 11 14 15 1 7 8 10 7 6 8 12 7 9 1 1 4 6 12 3 3 6 7 6 1 13 14 12 1 6 8 7 9 1 7 8 10 12 117 15 4 6 12 3 3 6 7 6 10 12 7 9 10 10 3-month © 2015 Netmanias  www.netmanias.com
  10. 10. Mobile Statistics in Korea (Q1 2015) 0 10 20 30 40 50 60 70 1112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 2011 2012 2013 2014 2015 Subscribers [Million] 0.7M 21.3 M 50.0 M 52.3 M 2012 2013 2014 41.3 M: Smartphone subscribers 57.3 M: Mobile subscribers 50.5 M: Population 37.60 M: LTE subscribers Q1 2015 Mobile penetration rate (% of population) 113.6% Smartphone penetration rate (% of population) 81.7% LTE penetration rate (% of population) 74.6% LTE subscription rate (% of mobile subscribers) 65.6% 74.6% 81.7% Smartphone 4G LTE © 2015 Netmanias  www.netmanias.com
  11. 11. Mobile Application Usages in Korea: Spending time Korean smartphone subscribers use their phones more than 3 hoursa day © 2015 Netmanias  www.netmanias.com
  12. 12. Mobile Application Usages in Korea: Traffic 0 20 40 60 80 100 120 140 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 2012 2013 2014 2015 3G (WCDMA) 4G (LTE) Monthly Traffic – per access network [PB] 126.9 PB (96.5%) 4.6 PB (3.5%) Mobile Traffic Composition (4G traffic only) 45 44 45 49 56 49 19 19 18 16 14 15 13 14 15 16 15 16 10 11 10 9 8 16 8 7 8 6 4 35 5 4 5 5 2 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Video Web SNS Multimedia (Music, etc) MarketDownload Etc. © 2015 Netmanias  www.netmanias.com
  13. 13. Ramp-up of Operator’s revenue by 4G transition 26,000 28,000 30,000 32,000 34,000 36,000 38,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 2014 0 10 20 30 40 50 60 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 2015 Mobile Subscribers in Korea 4G LTE 3G 2G Mobile APRU (2G+3G+4G) Subscribers [Million] [KRW] Mobile Service Revenue (2G+3G+4G) in Korea 2012 2013 2014 2012 2013 2014 29,203 36,468 18,000 18,500 19,000 19,500 20,000 20,500 21,000 21,500 22,000 22,500 2011 2012 2013 2014 3.1% 9.5% 14.2% [KRW Billion] 22,165 19,412 USD 20BUSD 17.5B 2012 2013 2014 24.9% © 2015 Netmanias  www.netmanias.com
  14. 14. Why 4G subscribers’ ARPU is higher than 3G? Band Data 100 Band Data 80 Band Data 61 Band Data 51 Band Data 47 Band Data 42 Band Data 36 Band Data 29 Pricing Plans 100,000 80,000 61,000 51,000 47,000 42,000 36,000 29,900 Monthly Fee [KRW] Unlimited Voice Call 35 GB + 2GB/day 20 GB + 2GB/day 11 GB + 2GB/day 6.5 GB 3.5 GB 2.2 GB 1.2 GB 300 MB Data SK Telecom 3G/4G Tariff Plan Monthly Traffic – per device type [GB] 0 1 2 3 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 2012 2013 2014 2015 3.49 GB 0.97 GB X3.6 4G smartphone 3G smartphone 2G & 3G feature phone 0.004GB · Most monthly plans from Korean mobile operators come with unlimited talk, and your choice of data amount. · Same rate for 3G and 4G: Rates vary depending on the data amount you choose (e.g. 1GB, 5GB, etc.), not whether you use 3G or 4G. · 4G subscribers use about 3.6 times as much data as 3G subscribers do (see the chart below), which means their ARPU is higher Than 3G subscribers’. 150~300 Mbps 3.49 GB ~12Mbps 0.97 GB 4G 3G Max BW/Cell Ave. Monthly Data Usage / User LTE ARPU Mobile ARPU 33,700 48,400 LTE ARPU Mobile ARPU SK Telecom © 2015 Netmanias  www.netmanias.com
  15. 15. What happened to innovation? 0 10 20 30 40 50 60 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 2015 ➊ Mobile Broadband ➋ Quality Optimization ➌ Save CAPEX/OPEX D-RAN LTE 3-Band LTE-AWideband LTE Wideband LTE-ALTE-A 4G3G 2G eICICC-RAN C-RAN Wireless Quality – Proactive measurement ➍ Pricing Plan Small Cell In-Building Unlimited voice plan Fronthaul and backhaul fault – proactive detection CoMP Unlimited data plan VoLTE LTE Femto © 2015 Netmanias  www.netmanias.com
  16. 16. Let’s briefly look at around 2011! Explosive growth of Data Traffic Source: SK Telecom, 2011.07 Source: KT’s internal material, 2011.11 KT 3G Mobile Subscribers KT Smartphone Subscribers x152 Data Traffic prediction of 3G/LTE Source: KT’s internal material, 2011.11 SK Telecom Mobile Traffic 0 20 40 60 80 100 120 140 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 2012 2013 2014 2015 3G (WCDMA) 4G (LTE) 126.9 PB (96.5%) 4.6 PB (3.5%) © 2015 Netmanias  www.netmanias.com
  17. 17. What happened to innovation? If so, how did they deploy 4G LTE network? Paradigm Shift: It's not coverage, but capacity in 4G LTE Era 2G, 3G: Coverage-based deployment 4G: Capacity-based deployment Real Deployment (KT) RRH BBU AC/ Cooling Power (UPS Transport Antenna RRH ... Base Station ❶ Inter-Cell Interference ❷ Cell Site Cost x195 Solution = C-RAN To cover soaring data traffic, network capacity needs to grow as well. To this end, LTE/LTE-A macrocells are getting smaller (In some metropolitan cities of Korea, the radius of an LTE/LTE-A cell is merely several hundred meters long). And this results in: 1. more inter-cell interference, and 2. higher cost (Capex/Opex) of building and operating smaller and more cell sites. Optimized deployment/operation, interference coordination became more important. © 2015 Netmanias  www.netmanias.com
  18. 18. C-RAN Standalone Base Station RRHs BBU RRH (Outdoor) BBU (Indoor) Interface Specifications between BBU and RRH: CPRI Distributed RAN (D-RAN) Centralized/Cloud RAN (C-RAN) •BBU, RRH, A/C, UPS (power), transport, etc. are all installed at cell sites (located in leased spaces) •High costs of lease, installation, utilities, and maintenance •IP traffic aggregated by backhaul network •In C-RAN, BBUs at cell site are moved to A centralized location (e.g. CO). •C-RAN has drastically lowered the cell site cost (Capex/ Opex), and has maximized the effects of CoMP and eICIC of LTE-A. •A new fronthaul network was required to deliver a huge volume of baseband I/Q streams between BBUs and RRHs over CPRI or OBSAI interfaces. ❶ reducing X2 distance ❷ reducing Cell Site Cost RRH BBU AC/ Cooling Power (UPS) Antenna RRH .. .Base Station CO RRH BBU AC/ Cooling Power (UPS Transport Antenna RRH ... Base Station Antenna RRHs (Outdoor) CO Antenna BBU Transport RRHs (Outdoor) X2 X2 CPRI CPRI © 2015 Netmanias  www.netmanias.com
  19. 19. [C-RAN & X-hauling] 1. Where are the concentrated BBUs located at? CO BBUs Fronthaul Backhaul CO Backhaul Hybrid BH/FH Architecture Full Fronthaul Architecture X2 Fronthaul X2 BH Connectivity (DSL, Cable, PON, etc.) CPRI Connectivity (Dark Fiber, WDM) Site (Macro) eNB (BBU+RRHs) RRHs BBU Pool Intra-Site CoMP Inter-Site CoMP Interference Area © 2015 Netmanias  www.netmanias.com
  20. 20. [C-RAN & X-hauling] 2. Dark Fiber Availability Fronthaul (Dark Fiber) Fronthaul (WDM Network) RRHs (Outdoor) CO BBU RRHs RRHs CPRI Traffic RRHs (Outdoor) CO BBU RRHs RRHs Ring (Active WDM) P2P (Active WDM, Passive WDM) CPRI Traffic © 2015 Netmanias  www.netmanias.com
  21. 21. End-to-end 4G LTE Network IP Backhaul PE BBU Pool L3 SW RRH Edge SK Telecom C-RAN/Fronthaul EPC Core Center Node (4) Edge Node (14) PE Edge PE Edge CPRI over Active/Passive WDM P P PE EPC Core Node (2) P CO (400) P P KT CO BBU Pool L3 SW RRH CPRI over Dark Fiber 10G PE Edge Core Node (14) P P Center Node (2)Edge Node (31) PE Edge PE Edge EPC Core As of July 2014, Approximately 145,000 RRHs (80% of all LTE RRHs, 173,219) are connected to C-RAN fronthaul since 2011. RRH BBU Pool EPC Core © 2015 Netmanias  www.netmanias.com
  22. 22. End-to-end 4G LTE Network: Deployed Solutions World Top Class Vendors IP Backhaul PE BBU Pool L3 SW RRH Edge SK Telecom C-RAN/Fronthaul EPC Core Center Node (4) Edge Node (14) PE Edge PE Edge CPRI over Active/Passive WDM P P PE EPC Core Node (2) P CO (400) P P KT CO BBU Pool L3 SW RRH CPRI over Dark Fiber 10G PE Edge Core Node (14) P P Center Node (2)Edge Node (31) PE Edge PE Edge EPC Core RRH BBU Pool EPC Core C-RAN: Samsung/Ericsson/Nokia EPC Core: Cisco IP/MPLS: Cisco/Juniper C-RAN: Samsung/Ericsson/Nokia EPC Core: Samsung/Ericsson Fronthaul: HFR IP/MPLS: Cisco/ALU/Juniper © 2015 Netmanias  www.netmanias.com
  23. 23. Major Players in Korea Mobile subscribers trace in Korea (2011-2014) Mobile subscribers in Korea (Q4 2014) 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 2011 2012 2013 2014 2012 2013 2014 Subscribers [Million] 4G LTE 3G WCDMA 10.8 M 6.5 M Dec. 2014: 17.3M 0.0 5.0 10.0 15.0 20.0 25.0 30.0 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 2011 2012 2013 2014 2012 2013 2014 Subscribers [Million] 4G LTE 3G WCDMA 16.7 M 8.4 M Dec. 2014: 28.6M 2G CDMA 3.5 M 0.0 2.0 4.0 6.0 8.0 10.0 12.0 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 2011 2012 2013 2014 Subscribers [Million] 4G LTE 8.5 M 2G CDMA 2.8 M Q4 2014: 11.3 M 2012 2013 2014 SK Telecom KT LG U+ 0 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 SK Telecom KT LGU+ 4G LTE 3G WCDMA 2G CDMA SK Telecom KT LG U+ 28.6M 17.3M 11.3M 16.7 M 10.8 M 8.5 M © 2015 Netmanias  www.netmanias.com
  24. 24. [SK Telecom Case Study] SK Telecom’s technology innovation and commercialization History 2.4% 7% 13% 21% 27.9% 35% 41% 45% 49.3% 53.1% 55.1% 57.1% 58.5% 61.3% 0. 0% 50. 0% 100. 0% 150. 0% 200. 0% 250. 0% 300. 0% 350. 0% 400. 0% 450. 0% 500. 0% 0 5 10 15 20 25 30 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 2015 n LTE Penetration rate (% of mobile subscribers) 2012.07 Multi-Carrier 1 2012 2013 2014 20152011 2011 C-RAN/Fronthaul Commercialization 2011.07 LTE (75Mbps) 2012.08 VoLTE 1 2013.06 LTE-A (150Mbps) 1 2013.09 Wideband LTE (150Mbps) 1 2014.06 Wideband LTE-A (225Mbps) 1 2015.01 3-Band LTE-A (300Mbps) 1 2014 Deploy Small RRH 2013.07 Full HD Mobile Streaming 1 2015.01 eICIC 1 2012.04 Completion of Nationwide LTE network building 2 2015.04 Completion of Nationwide 3band LTE- A network building 2014.11 (MSIP) Wideband LTE-A: 116.9Mbps 2013.12 (MSIP) Wideband LTE: 56.2Mbps 2012.12 (Benchbee) LTE: 37.2Mbps Av. D/L Speed n Mobile subscribers n LTE Subscribers © 2015 Netmanias  www.netmanias.com
  25. 25. [SK Telecom Case Study] Revenue increase by ARPU improvement and LTE subscriber growth 1.1 1.7 1.8 2.1 2.1 2.2 2.2 2.2 2.6 2.9 3 3.1 3.26 3.22 3.29 3.31 3.383.37 3.4 3.49 3.57 3.53 3.6 3.64 3.67 3.63 2.9 3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014 2015 1 1.5 2 2.5 3 3.5 4 4.5 LTEtraffic Mobile ARPU LTE data usage per-capita growth [GB] 0 5 10 15 20 25 30 11 2 5 8 11 2 5 8 11 2 5 8 11 2011 2012 2013 2014 LTE 3G 2G 16.7M 28.6M 2,500 2,550 2,600 2,650 2,700 2,750 2,800 2,850 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012 2013 2014 Mobile Revenue [KRW Billion] LTE Subscribers Growth Mobile ARPU Growth Mobile Revenue Growth [10K KRW] 2,621 2,805 © 2015 Netmanias  www.netmanias.com
  26. 26. LTE Network Innovation (Macro) IP/MPLS Macro RRH BBU BBU Macro RRH Master Marco Cell WDM RURURRH 10GE (Ring, P2P) ... BBU Macro Cell Backhaul WDM ... BBU BBU WDM WDM 1. Legacy Macro Cell Sites è Macro C-RAN WDM Tens of BBUs (connecting hundreds of RRHs) CPRI CPRI CPRI CPRI EPC SAE GW RT RT COT RT RT COT LTE C-RAN: Centralized/Cloud RAN BBU: Baseband Unit RRH: Remote Radio Head SCAN: Smart Cloud Access Network GE Multi-10GE BBU GE CO (SK Telecom’s office building) RURURRH RURURRH RURURRH BBU RURURRH RURURRH RT RURURRH Fronthaul: Active WDM Fronthaul: Active WDMRT IP/MPLS/Ethernet Backhaul LTE CPRI Fronthaul (Active WDM COT &RT) RT RT COT RRH © 2015 Netmanias  www.netmanias.com
  27. 27. LTE Network Innovation (Small cell) IP/MPLS Macro RRH BBU BBU Macro RRH Master Marco Cell WDM RURURRH 10GE (Ring, P2P) ... BBU Macro Cell Backhaul WDM ... BBU BBU WDM WDM 1. Macro C-RAN WDM Tens of BBUs (connecting hundreds of RRHs) CPRI CPRI CPRI CPRI CPRI CPRI LTE RRH 2. Small Cell C-RAN EPC SAE GW RT RT COT RT RT COT LTE C-RAN: Centralized/Cloud RAN BBU: Baseband Unit RRH: Remote Radio Head SCAN: Smart Cloud Access Network GE Multi-10GE BBU GE CO (SK Telecom’s office building) RURURRH RURURRH RURURRH BBU RURURRH RURURRH RT RURURRH Fronthaul: Active WDM Fronthaul: Active WDM RRH RT IP/MPLS/Ethernet Backhaul LTE LTE 2. Small Cell C-RAN Outdoor Small RRH (Samsung, 2014 H1) CPRI Fronthaul (Active WDM COT &RT) © 2015 Netmanias  www.netmanias.com
  28. 28. LTE Network Innovation (In-Building) IP/MPLS Macro RRH BBU BBU Macro RRH Master Marco Cell WDM RURURRH 10GE (Ring, P2P) ... BBU Macro Cell Backhaul WDM ... BBU BBU WDM WDM 1. Macro C-RAN WDM Tens of BBUs (connecting hundreds of RRHs) CPRI CPRI CPRI CPRI CPRI CPRI LTE RRH 2. Small Cell C-RAN EPC SAE GW RT RT COT RT RT COT LTE C-RAN: Centralized/Cloud RAN BBU: Baseband Unit RRH: Remote Radio Head SCAN: Smart Cloud Access Network GE Multi-10GE BBU GE CO (SK Telecom’s office building) RURURRH RURURRH RURURRH BBU RURURRH RURURRH RT RURURRH Fronthaul: Active WDM Fronthaul: Active WDM RRH 3. In-Building RT RU RU RIUMUUTP Cable LTE Digital RF Signal RU RU UTP Cable LTE RIUMU IP/MPLS/Ethernet Backhaul LTE LTE Small Cell C-RAN In-Building © 2015 Netmanias  www.netmanias.com
  29. 29. Technology Innovation Path: Qualified at Korean Commercial LTE Markets D-RAN (Macro Cell) C-RAN (Macro Cell) C-RAN (Small Cell) In-Building RU RU MU Macro RRH (2011.07) Small RRH (2014) In-Building Trial (2014.12) Macro Small Cell Macro 2011 07: LTE (75Mbps) 06: 2-Band CA (150Mbps) 09: Wideband LTE (150Mbps) 2012 2014 20152013 01: 3-Band CA (300Mbps) 01: eICIC 05: LTE-WiFi: MP-TCP Commercialized Demonstrated 04: Uplink CoMP 06: Wideband LTE-A (225Mbps) RAN Architecture Evolution Path 4G Technologies Evolution Path 02: LTE-U 450Mbps 03: mmWave System (28GHz, 7.5Gbps) 03: FD-MIMO 06: Full-Duplex Radio ~ 2020 02: 3-Band CA (450 Mbps) 02: LTE-A CA Femto 02: Inter-Site CA 06: FDD-TDD LTE CA (3.8 Gbps) 07: LTE-WiFi: MP-TCP 02: CA (150 Mbps) 10: Wideband LTE-A 02: CA 06: eICIC · 2015: 5G Test-bed · 2016: 5G Pilot Trial · 2018: 5G Field Trial – PyungChang W. Olympics 08: VoLTE CoMP (propretary) · cm/mmWave · 5G Small Cell · New RAT · Massive MIMO ø scheduled ø planned Macro eNB BBUs 4G LTE 4G LTE-A 5G Start LTE Start LTE-A 5G © 2015 Netmanias  www.netmanias.com

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